The Commodities Futures Trading Commission (CFTC) is launching a request for comment on its tokenized collateral initiative, which is considering both pilot programs and rule changes. This follows pilot plans announced in February. The purpose is to use tokenized collateral to meet margin calls for derivatives trading. Tokenization can allow collateral to be posted instantly with fewer intermediaries.
“At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for modernization of collateral management and greater capital efficiency,” said Acting Chairman Caroline Pham.
Although the CFTC mentioned using “tokenized collateral including stablecoins”, the comments published alongside the announcement were dominated by stablecoin issuers such as Circle, Ripple and Tether. This contrasts with broader recommendations from industry.
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